Do Exchange Rates Have Any Impact Upon UK Inward Foreign Direct Investment?. PDF Download

Author: Andrew James Abbott
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Abstract: This paper examines the impact of the level and volatility of the real exchange rate on UK foreign direct investment (FDI) inflows from the seven major countries of origin of the investment over the period 1975 to 2001. We use both fixed effects and dynamic generalised methods of moments (GMM) panel estimation techniques, and manufacturing data disaggregated by high and low R&D content of the sector of destination. Our results provide strong evidence that exchange rate volatility has a negative impact on FDI flows into the UK, irrespective of the sector of destination of the investment. On the other hand, the level of the real exchange rate is found to have a statistically insignificant effect on FDI after controlling for endogeneity of the regressors

Author: OECD
Publisher: OECD Publishing
ISBN: 1589062205
Category :
Languages : en
Pages : 169

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Foreign Direct Investment Statistics: How Countries Measure FDI shows progress in recent years in moving toward compilation in accordance with international standards that have been established by the International Monetary Fund (IMF) and the ...

Author: Michael W. Klein
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 42

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There has been a significant correlation between United States inward foreign direct investment and the United States real exchange rate since the 1970s. Two alternative reasons for this relationship are that the real exchange rate affects the relative cost of labor and that the real exchange rate alters relative wealth across countries. In this paper we explore these alternatives by examining the determinants of four measures of inward foreign direct investment to the United States from seven industrial countries over the period 1979 to 1991. We find strong evidence that relative wealth significantly affects U.S. inward foreign direct investment. We find no evidence that relative wages have a significant impact on the determination of U.S. foreign direct investment. These results are robust to the choice of countries in our sample and when controlling for changes in tax codes.

Author: Richard S. Xiong
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 228

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Author: Max David Steuer
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 238

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Study of the effects of inward direct investment on the economy of the United Kingdom.

Author: Holger Görg
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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In this paper we examine the impact of the level of the exchange rate, volatility in the exchange rate and exchange rate expectations on outward US foreign direct investment in 12 developed countries and inward foreign direct investment to the USA from those countries for the period from 1983 to 1995. In our empirical analysis we find no evidence for an effect of exchange rate variation on either US outward investment or inward investment in the USA. This result is robust to a number of different estimation procedures. As regards the level of the exchange rate we find a positive relationship between US outward investment and appreciation in the host country currency while there is a negative relationship between US inward investment and appreciation in the dollar.

Author: C. White
Publisher: Springer
ISBN: 0230624839
Category : Business & Economics
Languages : en
Pages : 274

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Incorporating an accurate measure of risk is important to the appraisal of an international investment. This book examines and recommends how decisions on international investment projects are made. Critiquing and integrating existing theory, it shows how risk can be incorporated into the present value formula produce a clear decision rule.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451963513
Category : Business & Economics
Languages : en
Pages : 32

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Book Description
This paper summarizes the theory and empirical evidence on the determinants of foreign direct investment. These determinants include expected relative rates of return, risk diversification, market size, technological advantage, market failure, oligopolistic rivalry, liquidity, currency strength, political instability, tax policy, and government regulations. While most explanations of foreign direct investment receive some empirical support, there is not sufficient favorable evidence on any one of them to merit rejection of all the others.

Author: Linda S. Goldberg
Publisher:
ISBN:
Category : Demand (Economic theory)
Languages : en
Pages : 40

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Author:
Publisher: Palgrave Macmillan
ISBN:
Category : Business & Economics
Languages : en
Pages : 260

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Book Description
A clear and logical aid to the revised coding of industrial activities for the United Kingdom in accordance with European regulations, introduced in 2008. This volume contains a hierarchical classification of all industrial activities. Also available: Index to the UK Standard Industrial Classification of Economic Activities 2007.